Connect with us
tesla giga shanghai tesla giga shanghai

News

Tesla lowers price of China Model 3 to undercut BMW and Mercedes in strategic play

Tesla Made-in-China Model 3 (Credit: Tesla China)

Published

on

Tesla reduced the price of its Rear-Wheel Drive Made-in-China (MIC) Model 3 to RMB 299,050 or $42,919 after government subsidies. The price of the mass-produced electric sedan was initially pegged at $50,000, but in a surprise update on Friday, the Elon Musk-led electric carmaker lowered its price beneath a major psychological barrier of RMB 300,000, just days before the significant January 7 date. The price of the Dual Motor All-Wheel Drive Model 3 Long Range and Performance variant remains the same at 439,900 yuan ($63,086) and 509,900 yuan ($73,124), respectively.

The 16 percent price reduction on locally-produced Model 3 is made possible by new energy subsidies recently announced by the Chinese government. Tesla offers as much as RMB 24,750 savings for private purchases and RMB 17,325 for those operating new energy passenger cars. The Tesla China website now displays the adjusted prices of the locally-made Model 3s.

Tesla’s price reduction puts Model 3 in a category that’s strategically aimed at the entry-level luxury sedan category, with concentrations on Mercedes C Class and BMW 3 Series.

The latest development follows the announcement of the electric carmaker that the second round of Made-in-China Model 3 deliveries will happen on Jan. 7 at the Gigafactory Shanghai facility where the first 15 units of the mass-produced electric sedan were symbolically handed over to employees of Tesla.

Advertisement

The company also revealed during the Gigafactory 3 Delivery Ceremony that 30 percent of the parts used to build the Model 3 in China is locally-sourced, but with plans to completely localize its supply chain and open the possibility to more price adjustments in the future.

The cheaper entry-level Model 3 can help Tesla lure more customers away from local electric car makers and global brands in the largest EV market in the world. Tesla believes China could become the biggest market for its Model 3 and it might well be a key market that can help it achieve sustained profitability.

Recently, Tesla also announced that the Gigafactory 3 in Shanghai has achieved its Model 3 production goal and has been rolling out 280 cars per 10-hour shift or roughly 1,500 units a week. It plans to ramp up production and will likely hit 3,000 Model 3 a week when more production workers join the frontline.

The China arm of the Palo Alto, California-based company has been doing a hiring spree to add more people to help in different production line positions such as quality control, welding, painting, powertrain, and assembly, among others.

Advertisement

The first deliveries of the Made-in-China Model 3 happened exactly 357 days after the Gigafactory facility broke ground, an amazing feat for the first car plant in China wholly owned by a foreign carmaker.

A curious soul who keeps wondering how Elon Musk, Tesla, electric cars, and clean energy technologies will shape the future, or do we really need to escape to Mars.

Advertisement
Comments

News

Tesla hits FSD hackers with surprise move

In recent weeks, the company has begun remotely disabling FSD capabilities on affected vehicles, and in some instances, permanently revoking access even for owners who paid thousands of dollars for the feature.

Published

on

Tesla is cracking down on hackers who have figured out a way to utilize third-party programs to activate Full Self-Driving (FSD) in their vehicles — despite the suite not being approved for use in their country.

Tesla has launched a sweeping enforcement campaign against owners using third-party hardware hacks to activate FSD software in countries where the advanced driver-assistance system remains unregulated or unapproved.

In recent weeks, the company has begun remotely disabling FSD capabilities on affected vehicles, and in some instances, permanently revoking access even for owners who paid thousands of dollars for the feature.

Reports of the crackdown have surfaced across Europe, China, Japan, South Korea, and the UK, marking a significant escalation in Tesla’s efforts to enforce regional software restrictions.

FSD is Tesla’s flagship supervised autonomy package, which is available in several countries across the world. Currently limited by regulatory hurdles, it has not received full approval in most markets outside of the United States due to various things, such as safety standards, data privacy, and local traffic laws.

Advertisement

However, the company is working to expand its availability globally. Nevertheless, Tesla has installed the necessary hardware on vehicles globally, but locks the features based on geographic location.

Some owners have taken accessing FSD into their own hands, using jailbreak or bypass devices.

These “jailbreak” tools, typically €500 USB-style modules that plug into the vehicle’s Controller Area Network (CAN) bus, intercept signals to spoof approvals and unlock FSD, including advanced navigation, Autopark, and Summon features.

Hackers in Poland, Ukraine, and elsewhere have distributed the devices, with some claiming they work on HW3 and HW4 vehicles and can be unplugged to restore stock settings. In China alone, over 100,000 owners reportedly installed such modifications.

Advertisement

Tesla’s response has been swift and uncompromising. Recently, the company began sending in-car notifications and emails warning owners that unauthorized modifications violate terms of service, compromise vehicle safety systems, and expose cars to cybersecurity risks.

The email communication read:

“Your vehicle has detected an unauthorized third-party device. As a precaution, some driver assistance functions have been disabled for safety reasons. A software update will be available soon. Once you install the update, some features may be enabled again.”

Vehicles detected using the hacks have had FSD capabilities remotely disabled without refund. In some cases, owners report permanent bans, even if they had legitimately purchased the software package.

Advertisement

Tesla’s hardline stance underscores its commitment to regulatory compliance and safety.

Tesla has long argued that unsupervised FSD requires rigorous validation, and premature activation could endanger drivers and bystanders.

The crackdown sends a clear-cut message to those who are bypassing the FSD safeguards, but there are greater implications for Tesla if something were to go wrong. This is an understandable way to protect the company’s reputation for its FSD suite.

Advertisement
Continue Reading

News

Tesla developing small, affordable SUV, report claims

This latest rumor deserves heavy scrutiny. Tesla has already walked away from a mass-market $25,000 EV once before.

Published

on

Credit: Tine Rusc

Tesla is developing a small, affordable SUV, a new report claims, speculating that the automaker is planning to add yet another vehicle to its lineup at a price point similar to the Model 3 and Model Y, but smaller and more compact.

But it does not make a whole lot of sense, especially considering a handful of things CEO Elon Musk said and the overall plan for Tesla’s future.

Reuters reported that Tesla is in the early stages of developing an all-new, smaller, cheaper electric SUV. Citing four sources familiar with the matter, the story claims the vehicle would be shorter than the Model Y, built in China, and represent a fresh platform rather than a variant of the Model 3 or Y.

Suppliers have reportedly been contacted to discuss details, though Tesla has not commented. The move appears aimed at broadening affordability amid slowing EV demand and intensifying competition, particularly from Chinese rivals.

Advertisement

This latest rumor deserves heavy scrutiny. Tesla has already walked away from a mass-market $25,000 EV once before.

In 2024, the company scrapped its long-teased “Redwood” project for a budget-friendly car. Elon Musk explained the decision bluntly during an earnings call: a conventional low-cost model would be “pointless” and “completely at odds with what we believe.”

In other words, chasing a bare-bones cheap EV runs counter to Tesla’s core mission of accelerating sustainable energy through cutting-edge technology and autonomy rather than volume-driven price wars.

Musk’s own recent statements reinforce skepticism about a compact SUV pivot. Just two weeks ago, on March 25, he responded to fan requests for a minivan by posting on X: “Something way cooler than a minivan is coming.”

Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’

Advertisement

The remark came in the context of family-hauling needs, with Musk highlighting the Cybertruck’s ability to seat multiple child seats. It signals Tesla’s focus is shifting toward more spacious, innovative people-movers—not shrinking its lineup.

U.S. demand data echoes this logic.

The long-wheelbase Model Y L—a six-seat, stretched variant offering extra room for families—has generated massive interest wherever offered. Fans in the U.S. have basically begged for the Model Y L to make its way to the States, or for the company to develop a full-size SUV.

The Model Y L is selling well in China, where it is manufactured.

Advertisement

Delivery wait times for the Model Y L stretched into February 2026 as orders poured in. Tesla recently expanded the trim to eight new Asian markets, yet it remains unavailable in the United States, where consumer appetite for a larger, more practical SUV is reportedly strong.

American buyers have consistently favored bigger vehicles; the Model Y already outsells most competitors precisely because it delivers crossover utility without compromise. A compact model shorter than today’s bestseller would likely miss this mark entirely.

Tesla’s product strategy has long emphasized differentiation through autonomy, range, and desirability rather than racing to the bottom on price. Stripped-down variants of the Model 3 and Y have already struggled to ignite broad demand.

A new compact SUV built in China might sound logical on paper for cost-sensitive buyers, but it risks repeating past missteps—diluting brand cachet while ignoring clear signals from Musk and the market.

Advertisement

History suggests Tesla talks about affordable cars more often than it delivers them. Whether this Reuters scoop evolves into metal or joins the $25k project on the scrap heap remains to be seen.

For now, the smart money is on Tesla doubling down on “way cooler” vehicles that actually fit American families—and Tesla’s ambitious vision—rather than a smaller SUV that feels like yesterday’s news.

Continue Reading

News

Tesla CEO Elon Musk says next FSD release is the one we’ve been waiting for

On Thursday, Musk teased the capabilities and next steps for Tesla’s Full Self-Driving software, focusing squarely on the incremental improvements of the current v14.3 suite, as well as the looming arrival of v15.

Published

on

Credit: Tesla

Tesla CEO Elon Musk teased the capabilities of a future Full Self-Driving release, but it seems like we are getting what Yogi Berra once called “Déjà vu all over again.”

On Thursday, Musk teased the capabilities and next steps for Tesla’s Full Self-Driving software, focusing squarely on the incremental improvements of the current v14.3 suite, as well as the looming arrival of v15.

He confirmed that upcoming point releases of v14.3 will deliver additional polish to the current build, smoothing out remaining edges in an already capable system. These iterative updates, Musk noted, are designed to refine performance without requiring a full version overhaul.

Tesla Full Self-Driving v14.3: First Impressions

Advertisement

Yet the real headline was Musk’s forecast for v15.

“V15 will far exceed human levels of safety, even in completely unsupervised and complex situations,” he wrote.

He clarified that v15 will be powered by Tesla’s long-awaited large model, an AI architecture with roughly 10x the parameters of the smaller model currently in widespread use. The leap, Musk explained, stems from the unusually rapid progress of the compact model, which has advanced so quickly that the larger counterpart has yet to catch up in real-world deployment.

However, it is becoming a pattern that is, by now, familiar to anyone following Tesla’s autonomous driving roadmap.

Musk has consistently and repeatedly framed each successive major release as the one poised to deliver game-changing autonomy. Earlier versions were similarly positioned as a movement toward the final piece of the puzzle, only for attention to pivot to the next milestone once they arrived.

The refrain has become a recurring feature of FSD communication: current software is impressive, the point releases will sharpen it further, but the true breakthrough lies one major iteration ahead.

Musk’s latest comments fit squarely into that cadence. While v14.3 point releases are expected to tighten supervised driving behaviors in the coming weeks, v15 is cast as the version that finally crosses the threshold into unsupervised operation at human-or-better safety levels across demanding scenarios.

Advertisement

The 10x parameter scale of the underlying large model is presented as the key technical enabler, promising richer reasoning and more robust decision-making than anything deployed to date.

Advertisement

Whether v15 ultimately fulfills that promise remains to be seen. Tesla’s history shows that each new target generates fresh excitement—and occasional skepticism—about timelines.

Fans realize Musk’s timelines for FSD are exciting, but rarely met:

Advertisement

For now, Musk’s message is familiar: the immediate focus is polishing v14.3 through targeted point releases, while the 10x-parameter large model in v15 represents the next decisive step toward fully unsupervised, superhuman safety.

Hopefully, Tesla can come through, but we can only believe that once v15 gets here, v16 will be the next big step toward autonomy.

Drivers can expect continued refinement in the short term and a significantly more ambitious leap once the large model is ready. The cycle continues, but the stakes, Musk insists, keep rising.

Advertisement
Continue Reading